I still think the best choice is what sega did for popful mail. It's always streaming, but it's not FMV - think Flash animation.
Isn't just the same as PC Engine CD cinemas, only streamed?
No, with regular PCE SCD cinemas, the game loads 192-224k (sometimes using the ADPCM 64k for tiles/sprites too) worth of tile/sprites and animates them while the CD audio is playing. You really can't hold a lot of animation or pics in that memory size, so when new animation/pics are needed then the game stops the audio track, loads more animation/pics from a different track, seek the next audio track and start playing the audio and gfx script. A single full screen pic @ 256x224 is 28k uncompressed so you see how you can run out of memory pretty quickly.
Popful Mail method streams data and audio from the CD unit like with FMV. The audio isn't CD audio but PCM audio so there's no need to switch between data and audio tracks. And since the data is always streaming, you can constantly fill the tile/sprite buffers. Look at Popful Mail cinemas. You'll notice the game will go into looping frames (frames that repeat 3 or 4 animation cells over a scrolling BG, etc) or will "pause" or slowdown the cinemas animation with small dialogue animation and such, while the system ram gfx buffers are refilled with the next (and possibly heavy) animation sequence.
I should note that the older SCD and CD games used the system card internal bios routines to access the CD unit. Later game from '94-95 started using their own library routines for accessing the CD unit. Not only does this decrease the loading time (increasing the Kb per second) but also allows for the type of FMV used in GulliverBoy/Yuna bonus CD which wasn't possible with the SCD/CD routines. I think the earliest game to use custom libs for FMV was John Madden CD game.
Ok, I've derailed this thread enough.